August 2009

Check House After Rain

It is a good idea to walk your property after heavy rains especially if you just moved in and are getting to know your house.  If you have lived in your house for years ~ it is still a good practice to get into.  Most leaks can be quickly and afford-ably repaired; it’s those that you don’t know about that can cause a problem over time.

ATTIC – Take a few minutes and look around in the attic to see if you see any water stains.  Pay attention to areas where vents cut through the roof and around the chimney. 

HOUSE – look in rooms/closets and places you might not always go into.    Windows and doorways are another place to check.

CRAWL SPACES & BASEMENTS  – Look in your crawl space & basements to see if you have any areas that have water in them.  If you have water in your crawl space/basements – you will want to get it out as soon as you can.  Sump pumps are affordable and easy to use solution. 

EXTERIOR PERIMETER – Walk around your house after a rain.  If you have had problems or suspect there might be a problem with water entering the crawl space/basement – you might be able to identify the problem.    Water often shows up one place but enters from another spot.   If you are having drainage problems or water pooling in your yard – you can often see the path the water is traveling right a rain - or if you are brave enough – walk the yard while it is raining and watch where the water is flowing.

4.75% – 30yr Fixed Interest Rates!

Interest rates popped down to 4.75% yesterday for 30 year fixed conforming loans!   WOW!  Great time to buy – lower purchase prices – low interest rates!  AND if you are a first time buyer or haven’t owned primary house in past 3 years – you may be eligible for $8,000 tax credit if you close by 11.30.09!

Email me with questions and for more information!

July Homes Sales Rise 7.2%

The National Association of Realtors said today that home sales rose 7.2% to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June.   It was the 4th straight monthly increase and the highest level of sales since August 2007.   Sales had been expected to rise to annual pace of 5 million, according to surveyed economists.  July’s increase to 5.24 million was higher than anticipated. ”The housing market, with today’s strong rise in sales, has decisively turned for the better,” said Lawrence Yun, the chief economist for the National Association of Realtors.

National the median sales price is down by 15 percent to $178,400.   Sales of foreclosures & distressed properties make up about a third of all transactions in July which is down from half of all transactions from earlier this year.   In several markets across the US – buyers are purchasing foreclosed properties at deep discounts.   

The tax credit for first time buyers – also seems to have helped sales.   In order to qualify for the First-time buyer tax credit – homes must be CLOSED by November 30, 2009.    The tax credit is for 10% of the purchase price upt to a maximum of $8,000.   And while it is billed for the first time buyers – you may qualify if you haven’t owned a primary property for the past 3 years.   

The 9.4-month supply of current inventory at the current sales pace is unchanged from June.

Bernanke says US Economy on the Verge of Recovery

At the annual Federal Reserve conference in Jackson Hole, Wyoming, Federal Reserve Chairman Ben Bernanke says the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession.  Bernanke said that   economic activity in both the U.S. and around the world appears to be “leveling out,” and “the prospects for a return to growth in the near term appear good.”   

~sourced AJC.com

Atlanta Market Update – August 2009

An article in the AJC today reports that the median sales price of single family homes in metro Atlanta rose in the 2nd Quarter of 2009.   The metro Atlanta median sales price was $121,400 in the 2 nd Q of 2009, up 5 percent from $115,600 for the 1stQ of the year.  The current median sales price is 23 percent lower than it was this time last year, $158,300, according to figures released Wednesday by the National Association of Realtors.   Click here for the full AJC article.

When comparing the 2nd Quarter 2009 sales (number sold) to 2nd Quarter 2008 sales – there has been an expected decline in the number of sales.    2ndQ 2008 – total of 10,029 sales vs. 2ndQ 2009 – total of 8,520 sales.   But when broken out by sales price there is actually an increase in 2ndQ 2009′s numbers in the $200k or less sales price.    2ndQ 2008 total of 4,692 sales vs. 2ndQ 2009 of 5,035 sales.    Foreclosures and declining prices attribute to this increase in sales.

Foreclosures have had a tremendous impact on the 2009 market.  2Q 2008 - 19.5% of the sales were foreclosures compared to 2Q 2009 where 31.8% of the sales were foreclosures.  (Short sales are not included in these statistics at present as there is not a way to accurately track them.)   Certainly many buyers have been taking advantage of the falling prices & the $8000 tax credit to purchase homes.    As foreclores, short sales & great buys are purchased and the inventories absorbed – we should begin to see pricing stabilizing and eventually price increases.

New Home Sales Up – Nationwide

The Commerce Department reported that new home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.  WOW.  It is the fastest increase in more than eight years for new construction home sales.

Indeed home prices are still falling, but the improvement in new construction sales is another sign the national housing market is starting to bounce back.   Earlier this month, the government reported that national home resales rose almost 4 percent in June, the third straight monthly increase.

“The worst of the housing recession … is now behind us,” said David Resler, chief economist at Nomura Securities. “We’re turning the corner toward increased activity in housing.”

The median national sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.  In addition to lower prices, buyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers.  Home sales need to be completed by the end of November for buyers to take advantage.  You must close by November 30, 2009.

June’s results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

There were 281,000 new homes for sale at the end of June, down more than 4 % from May.  At the current sales pace, that represents 8.8 months of supply which is the lowest level since October 2007.  Some analysts say that when the inventory falls down around a 6 month supply, builders will feel more comfortable ramping up construction.

Portions of this article were sourced from a July 2009 article by real estate columnist Alan Zeibel & FMLS